Adani Wilmar IPO: The Adani Wilmar IPO is set to hit the markets in two days from now. The crore initial share sale of fast moving consumer goods, or FMCG company, Adani Wilmar will open on January 27 and close on January 31, a day ahead of the Budget presentation. The company, led by Indian business tycoon Gautam Adani and Singapore-based firm Wilmar, plans to raise Rs 3,600 crore through the offer. This will be the second IPO of the year, and is one of the most anticipated ones in the market. However, the public offer will open at a time when stock markets are have crashed in India for six consecutive days till Wednesday amid a number of factors.
Here are 10 Key Things to Know About Adani Wilmar IPO
Issue Size: Adani Wilmar Limited plans to raise Rs 3,600 crore through its first public offer. Initially, the company had initial plans to gain to raise Rs 4,500 crore through its IPO.
IPO Dates: The public issue of Adani Wilmar Limited will open on January 27 and will close on January 31, the company announced. The listing of the IPO is likely on February 8, which is next month.
Adani Wilmar IPO Price Band: The price band of the initial share sale of the company has been fixed at Rs 218 to Rs 230 per equity share.
Lot Size: Bidders can buy a minimum of 65 shares nd in multiples of 65 thereof, the firm has said.
Reserved Portion: Qualified Institutional Buyers will be able to buy 50 per cent of the shares, while 35 per cent of the portion has been reserved for retail buyers. The remaining 15 per cent of shares can be used by non institutional buyers.
Adani Wilmar IPO GMP Today: The unlisted shares of the Adani Wilmar IPO was giving a premium of Rs 50 today at the grey market amid stock market crash, slipping from Rs 70 premium that it fetched a day back.
Objectives of Issue: The IPO only comprises of fresh issue of shares. From the net proceeds, Rs 1,900 crore will utilized to fund the capital expenditure, another Rs 1,058.9 crore will be used for the repayment/prepayment of the borrowings. The rest Rs 450 crore will be utilized for funding strategic acquisitions and investments.
Key Strengths: Adani Wilmar Limited, known for its edible oil ‘Fortune’, is a leading consumer product company with leadership in branded edible oil and packaged food business. The company has an integrated business model with well-established operational infrastructure and strong manufacturing capabilities as well as extensive pan-India distribution network.
Company Valuation: In terms of valuations, the post-issue TTM P/E works out to
37.6x (at the upper end of the issue price band), which is reasonable considering
AWL’s historical top-line and bottom-line CAGR of 13 per cent and 39 per cent respectively over FY19-21, said AngelOne in a note.
Should You Invest: “Adani Wilmar has strong brand recall, wide distribution,
better financial track record and healthy ROE. Considering all the positive
factors, we believe this valuation is at reasonable levels. Thus, we recommend a
subscribe rating on the issue,” said AngelOne in its IPO note.
Choice Broking in a note said, “Its (Adani Wilmar IPO) edible oil business is likely to have a secular growth trend, but there is a huge untapped market for its Food and FMCG business segment. Thus considering the above observations, we assign a “SUBSCRIBE” rating for the issue..